Kefi Minerals Plc (LON:KEFI) has today issued a quarterly operational update in which it has confirmed the partial lifting of the current conditions of the State of Emergency in Ethiopia plus its expectation that it will be completely lifted around the end of Q117. At this point, KEFI anticipates being able to announce a co-lender to the Development Bank of Ethiopia followed by the start of actual development at Tulu Kapi.
Financing
In addition to a number of western banking consortia, KEFI has demonstrated its characteristic flexibility by broadening its financing discussions to include less geopolitically sensitive non-western banking syndicates as well as exploring other innovative options, such as executing financing at the project level or entering a BOOT (build-own-operate-transfer) agreement in order to minimise dilution at the parent company level. As things stand, management anticipates an additional c US$20m in equity financing, after taking all components into account, including mezzanine finance. This compares to Edison’s expectation of US$18.5m (see last note). In the meantime, the directors’ aggregate remuneration this quarter will be paid in shares. Finally, KEFI has announced that it has received formal confirmation of its £2.5m (0.06/share) tax refund from the Ethiopian tax authorities.
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